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watch nowVIDEO01:33The key metrics to watch when SpaceX reports its first set of results this weekMorning Call
SpaceX reports fiscal second-quarter results after the bell on Tuesday, the company’s debut earnings report following its record IPO in June.
Here’s what analysts are expecting, according to LSEG.
- Revenue: $6.93 billion
- Earnings per share: Loss of 26 cents
The company’s reported earnings — or loss — per share may not be comparable to the consensus of analysts’ estimates, as initial reports often contain unpredictable adjustments.
It’s the first time for Elon Musk’s reusable rocket maker to face Wall Street in this capacity, and investors are jittery. Since opening at $150 on June 12, SpaceX’s stock has dropped by 24%, wiping out close to $500 billion in market cap. The shares are almost 50% blow their intraday peak reached on June 16.
SpaceX lost $4.9 billion last year, largely due to hefty investments in artificial intelligence infrastructure. The company merged with Musk’s xAI in February, saying at the time that the vision was to build data centers in space. But even the launch business, which counts on large contracts from NASA, is losing money.
Most of SpaceX’s revenue for the year, and its only source of profit, came from its connectivity segment, which consists of its Starlink satellite internet service. Starlink is sold directly to consumers, as well as to government and military agencies.
Here’s what analysts expect in terms of revenue from SpaceX’s three segments, according to StreetAccount:
- Space: $835 million
- Connectivity: $3.83 billion
- AI: $2.18 billion
SpaceX’s conference call to discuss results is scheduled to begin at 4:30 p.m. ET.
CNBC’s reporters are covering SpaceX earnings from bureaus in San Francisco and Englewood Cliffs, New Jersey.
7 Min Ago
Hefty spending on AI
SpaceX told investors in its IPO prospectus that it would “prioritize growth and investment to capture significant opportunities in AI applications and compute infrastructure,” for its relatively new AI business.
In merging with xAI, SpaceX brought in the company’s data centers, Grok AI models and chatbot, and social network X, formerly known as Twitter. In June, SpaceX struck a deal to acquire Cursor AI for about $60 billion in a transaction expected to close in the third quarter.
SpaceX reported capital expenditures of $10.1 billion in the first three months of the year, with AI expenses counting for $7.7 billion of the total. Analysts on average expect capex of $13.2 billion for the second quarter, according to FactSet.
— Lora Kolodny
31 Min Ago
The rare ‘sell’ rating
Analysts at Phillip Capital took the rare step of recommending investors sell SpaceX shares.
In a report on Friday, the firm set its price target for the stock at $75, which would be a drop of about 35% from Monday’s closing price.
Of the more than three dozen analyst estimates on SpaceX tracked by FactSet, Phillip becomes just the second firm to rate the stock a sell. The other such rating was from Morningstar.
Phillip analysts cited the company’s big losses and negative cash flows expected until at least 2030.
— Ari Levy
46 Min Ago
Starlink profitability and subscriber adds in focus
watch nowVIDEO05:35SpaceX must hit at least two of three ‘moonshots’ to justify valuation: ex-Tesla board memberSquawk Box Europe
The slice of the SpaceX investor base most focused on fundamentals will be paying close attention to Starlink, which provides global high-speed internet coverage using a constellation of more than 10,200 satellites in low Earth orbit.
In its prospectus in June, SpaceX said the connectivity unit generated $11.39 billion in revenue in 2025, accounting for 61% of total sales. It was SpaceX’s only profitable business last year, generating income of $4.42 billion.
Also in June, the company raised prices for Starlink subscribers, initiating a $10 “monthly kit fee” to rent its terminals after also increasing rates for different subscription levels. SpaceX said in a post on X early that month that its Starlink subscriber count had surpassed 12 million.
Tim Farrar, a satellite services industry expert and president of TMF Associates, told CNBC that investors should watch for Starlink subscriber net adds and changes in average revenue per user.
— Lora Kolodny
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